was over. if you should care to check out a picture of todd and yours truly doing that activity follow me on twitter. enjoy. >>shepard: sounds like a good weekend, meg. >>megyn: i have a bruise, the makeup guy had to cover it up. when you hit them it take as long time. >>shepard: good for you, dead eye. the news begins anew on "studio b", world leaders now trying to stop the violence with israel and hamas, both sides exchange rockets and israeli soldiers say they stand ready to invade the gaza strip. ready. but not yet. a new study on steroids shows that 5 percent of middle and high school students are using the stuff to bulk up. middle school. not just the guys, either. that is coming up. looks like the twinkie may survive the bankruptcy but more than 18,000 workers are likely

out of luck. it is all ahead unless breaking news changes everything. this is "studio b" today. from fox at 3:00, world leaders are talking about how to avoid all-out war between israel and hamas. the head of the united nations is headed to israel and the palestinian territories. a palestinian militant group reported that israeli airstrikes on a building home to hamas tv station killed a leader. the israeli defense forces claim terrorists were in the building using journalists as human shields. health officials say since wednesday israeli attacks on hamas targets have killed 100 people including 50 civilians. israel reports hamas has killed three of its people and fired nearly 2,000 rockets at israel. israel also reports that the iran domed defense system

intercepted hundreds of rockets and international mediators including egypt and turkey are working with both sides in an attempt to avoid a ground war. we will have more on the effort to stop violence minutes from now but first we will get to david lee miller from southern israel. >>reporter: israel continues to keep up the pressure on the lanes. there have been over 1,400 airstrikes in gaza. the most recent included a stadium where the israelis say militants were launching rockets and a media center used by international journalists, israel claiming it was used by militants to facilitate communications. today there was a funeral for 11 members of the same family killed in an airstrike over the family, most were women and children. israel says that site was targeted because it was the home of a rocket engineer who was working for the militants. a short time ago i stalked to a fox news producer in gaza and he said many there are fearful

there could be more airstrikes. he said food, water, and medicine are in good supply. the militants in gaza continue to fire those rockets into israel today alone, about 100 rockets remain fired and half of those were intercepted. several israelis were wounded. today marks the sixth difficult of of -- difficult day of the conflict. they have everything they need if diplomacy fails. >>shepard: wall street is gaining ground hoping the government will come up to a solution to the fiscal cliff. the dow is up 174. it is doing well. will rally after stocks fell

early this in over uncertainty over the fiscal crisis. the primary concerns are combination of automatic spending cuts and expiring tax breaks january 1. the market gains suggest there is on the miss that congress and the white house will come up with a deal but there are deep divisions that so far have proved difficult to overcome. gerri is with us from the fox business network anchor of the willis report. >>gerri: the president and the democrats want the bush tax cuts to expire for everyone making $250,000 and more and the republicans want all those bush tax cuts to stay on the books. what they are talking about now is raising revenue. the details are unclear there is a lost optimism in the comments coming from folks. the president wants to generate $1.6 trillion in revenue over 10 years and speaker boehner said he is more interested in half that amount. >>shepard: all of the tax cuts are going to expire because the republicans and democrats signed

off on it. what they can do now is re-instate the tax cuts. >>gerri: extend them. >>shepard: the president is vetoing them for the richest. if they don't do anything they expire if everyone. the fiscal cliff has had problems and impact on how corporations are doing business. >>gerri: these are new numbers, the "wall street journal" put these out saying that overall spending by companies is down 1.3 percent and capital spending down, as well. companies are retrenching, spending less. they decided they want to spend husband h -- spend less because this is uncertainty. >>gerri: we need the companies to hire people and expand and open more plants around the world and in the united states. >>shepard: that would be nice. >> we have the executive

business editor and assistant managing editor of the the "wall street journal," parent company of this network. where are we? >> we had two rots looking into filings by companies and to pick up on what gerri said the uncertainty is leading to action so companies are say we will not spend so much the next 12 months. we will not buy more trucks or expand the lines. that has significant impact on what you can expect economic activity to be in six or 12 months down the road. some it has to do with china slowing down on uncertainty in europe. a huge amount has to do with fiscal cliff. >>shepard: there is not a huge crowd who doesn't believe they will not come up with a deal. >>guest: the timing is everything. we had our c.e.o. conference last week in washington, dc. i asked the c.e.o.'s, how many think there will be a deal by the end of the year, a credible and substantive deal, two-thirds said no.

i said when there is a deal, what percentage of you would probably increase your spending, do what gerri is describing, including hiring more people, and more than two-thirds said they would. so you can see there is this pent up demand to get going but they are so unsure where tax rates will be, where health care rates will be, where economic activity will be, they are just holding their powder. >>shepard: one thing for certain: there will be a level austerity measures, there will be cutbacks. >>guest: that is why you see the market up-and-down. so, up on jubilation that possibly there will be a deal. down on the realization that any deal means what? higher taxes? that means less money for consumers to spend. austerity on the part of government that means cutting back on entitlement programs and less activity there. that is not a trickly vibrant

picture for the year. >>shepard:en -- when we are in difficult times, the government spends more but we are still looking as austerity as something we ought to do, but a lot of people have a hard time getting that. >>guest: the government spends in crisis times in 2007 and 2008 and 2009, we have a growing economic now. the question is: do you keep on spending? do you say now is the time to address the bigger issues? the decision is, we have to address those issues. you cannot continue this. it will be a balancing act: keep trying to grow at 1 percent or 2 percent a year and cut back government spending for raising taxes which could stop the growth even further. >>shepard: tough days ahead.

the foam head of the c.i.a. said officials knew the terrorists were responsible for the deadly attacks on libya. why doesn't the administration say that in the first place? the word now is that, with didn't want the terrorists to know what we had going on at the time. they say it didn't have anything to do with the election. we report. you decide. federal law says one thing about marijuana and statute law in colorado says something very different. which laws do you enforce? that is ahead. you see this? oh, let me guess -- more washington gridlock. no, it's worse -- look, our taxes are about to go up. not the taxes on our dividends though, right? that's a big part of our retirement. oh, no, it's dividends, too. the rate on our dividends would more than double. but we depend on our dividends to help pay our bills. we worked hard to save. well, the president and congress have got to work together to stop this dividend tax hike.

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terrorists but someone erased references to terrorism and changed the talking points. susan rice repeated the false claims in five interviews days after the attack saying the assault of libya was a spontaneous reaction to a film insulting islam. the white house says that is the information she got. that was the best information available to them which would caught in risk supposing classified intelligence. catherine has the latest live in washington, dc. catherine, the matter of exposing specific things on the ground, my understanding is the talking point that was changed, was changing the word "consulate" to "outpost" and the rest was intact. >>reporter: that is the white house position. the republican chairman pointed to a little known group as the group responsible for the changes in the national security council and is called the deputies committee.

>> what i found fascinating on the investigation, and, again, my role in my mind is to say was there an intelligence failure? if so, how do we prevent it? it went through a deputy committee and that is where the narrative changed. >>reporter: it is chaired by a deputy assistant for national security affairs and includes but not limited to the six people you can see there but under secretary of defense, under secretary of state, and then deputy mike morell and the vice chair of the state department, but the state department would not comment and said there could be more information on the talking point and timeline later this afternoon. over the weekend the deputy national security advisor for strategic affairs, strategic communications, said the only thing made by the white house, important to listen to the lack, -- language, was the temperature

consulate to diplomatic facility but the focal point is ambassador rice. >> these people have shown a propensity to leak classified information to make the president look like a strong and decisive commander in chief. is it much of a stretch to think that the same people would withhold information to keep him from looking bad? >> the intelligence community's best estimate was it began as a protest and that is why the ambassador represented that because it was given to us late in the afternoon before the morning she went on. i don't see how we can fault her for relying on what the intelligence community said was their best sense of what took place. >>reporter: everyone you speak to it was not their organization that changed the talking points or marked off the words but this will now be investigated by the house of representatives and senate intelligence committee so

we will see a paper trail. >>shepard: another question, catherine, susan rice is the ambassador to the united nations and not from the state department and the sunday morning shows wanted someone from the state department. when susan rice got out there, now the accusation from the other side of the political fence, from those who are saying, don't put susan rice up for ambassador, or for secretary of state, their talking point was she wasn't easy on john mccain and this is political in the wake of a loss by republicans. is there anything to that? >>reporter: you hit upon a very important question which is why susan rice was chosen. the natural choice would be someone who was a career mill -- military or director of national director or the c.i.a. director but the white house told this to fox, they decided to put out ambassador rice because she wanted a senior diplomat because

a diplomat had been killed in benghazi but as one congressional source said to me it was like sending in the electrician when your plumbing is broken because that is not her expertise. >>shepard: no doubt about that. live from capitol hill. >> thousands of workers fighting big pay cuts could lose their jobs entirely now. it has to do with hostess company that makes twinkies and all the rest of it, the snow ball things, and now a judge is getting involved and telling both sides, make a deal or else. will twinkies live on? what about the jobs? we have answers on both fronts next. [ male announcer ] with over 50 delicious choices

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>>shepard: now it looks like twinkies might survive

bankruptcy. a little comfort to 18,000 americans whose jobs hank in the balance. a judge just moments ago indicated that hostess brands and the bakers union have agreed to return to the bargaining table tomorrow. executives indicated it is too late to change hostess. the company behind wonder bread and twinkies, of course, the bakery workers went on week protesting huge cuts in pay and benefits. hostess blames the strike but union leaders blame corporate mismanagement saying a dozen executives got raises of 80 percent last year as the company struggled to survive. now several firms are reportedly interested in buying off some of their brands, including a firm based in mexico. trace has the news and he is live for us this afternoon. trace, if the two sides cannot come to terms here, what do we

know of potential buyers? >>trace: the mexican company is the world's largest bread baker and they owe major banks like thomas english muffins and sarah he and foreigns "forbes" e is reports another company, sun capital, is interested. the bakers hope they keep the company intact and rehire the union workers but the c.e.o. of hostess says that is not likely, no one wants anything to do with these old plants or the unions or the contracts. he went on to say that not having collective bargaining is now the most attractive part of buying hostess. >>shepard: it is not just hostess management laughing out against the union? >>trace: the teamsters which is the largest union are pointing fingers at the bakers union. the teamsters agreed hostess had

been mismanaged for several years but they also agree to restructure their contracts and take a pay cut and pointing fingers at the bakers union and i quote, "unfortunately, the company is operating in financial problems were so severe that it required steep concessions from a variety of stakeholders but not all stakeholders were willing to be constructive." so now they are back to the table tomorrow but it seems like the bakers and hostess standing their ground. >>shepard: thank you, trace. now we bring in a law professor who specializes in bankruptcy. thank you, sir. >>guest: good afternoon. >>shepard: in the middle of a bankruptcy he talked about sarah lee, sara lee did not go away after it was sold, any more than hostess has to go away.

>>guest: twinkies will be here for some time to come. who will last longer, the twinkies or the unions my money is on the food product. what you see is a big buildup of name brand recognition, wonderbread and twinkies, people know that around the world and if hostess liquidates that valuable name, that can be produced at any bakery around the world. there is nothing magical about 33 bakeries that do it now. they are in trouble, the unions, unless they have had enough and want to shut down which they may want. if this is a game of bluff the time, the bluff has now been called. if they don't agree tomorrow, which i hope they do, if they don't reach an agreement, you will see this sold off to either another domestic or international baking company. >>shepard: part of the ugly optics here, not that unusual,

when the executives are getting double and drip people pay raises right before bankruptcy that leaves a bad taste in your mouth. >>guest: i agree, i don't know if this is terrible optics or there was deferred compensation but if i am a rank and file baker and i am asked to take 17 percent benefit cut to keep my job and i hear of 80 percent raise has is a difficult negotiating environment and it does not surprise me the parties had this explosion. but in bankruptcy negotiations like this, this is an explosion and you go to court and you file to liquidate but nothing is set in stone. it sounds like there was a cool-headed judge who said talk about this for another day before we shut down a 16 that has been around for 82 years. >>shepard: thank you, john. they will go in mediation tomorrow after a hearing today. new detail on the effort to work out a peace deal between israel

and hamas. we will explain who is leading the talks and what those parties say needs to happen to stop the violence. plus, president obama got a warm welcome during his historic visit to burma. but it was a chillier reception in the next stop. [ female announcer ] research suggests cell health plays a key role throughout our lives. one a day women's 50+ is a complete multivitamin designed for women's health concerns as we age. it has more of 7 antioxidants to support cell health. one a day 50+.

>>shepard: i am shepard smith and this is the "studio b" at

the bottom the hour. world leaders trying to hammer out a deal between israel and hamas as both sides pound each other. egypt is calling for hamas to stop the rocket attacks and hamas is demanding israel stock the blockade. president obama called the egyptian president and the israeli prime minister. working out a truce will not be easy considering both consideration each other a terrorist organization. the israeli military reports they stand ready to invade gaza. here is what it looked like on the ground there this afternoon. >> all along the gaza strip outposts have now popped up, with communication centers set up the past 24 to 48 hours and now it resembles an armed camp. here's valuable hours while they practice inside the fields that are relatively secure before the

go order is given, how to move through gaza, how they will clear houses, who will go where, on what street. that is valuable information because in come budget you don't have much time to think. of course, for many of the soldiers, the waiting is the very worst part for the young guys, they are gung ho and they want to go in. the older soldiers they know that some of the men they are with now, eating, telling jokes and training with, will not come home alive. overnight the air war entered day six with continued pow of targets inside gaza. large explosions indicated many of the targets hit were weapons depots. so for the israeli air force has hit 1,300 targets killing 100 palestinians including a family of 11 in what was a targeted killing gone wrong. the images of dead and injured children in gaza has hurt israel's case for their continues defenses. the israeli president faced this video of a family taking

covering in tel aviv's main part, a father comforting his crying baby, as hamas rockets fly overhead. >>shepard: that was leland vittert. sadly we do not have reports from the other side. johna this -- jonathan hunt? >>jonathan: there is a security council text being circulated but when it finally gets approved it will be in effect meaningless with in proposal for any kind of action. there is the part of the u.n. secretary-general arriving in the generation -- in the generation -- egyptian capital and will meet with

israeli prime minister binyamin netanyahu and palestinian president but whether the secretary-general's talks can lead to a progress seems doubtful at this point. >>shepard: i understand the u.s. and monitoring the egyptian led ceasefire negotiations. >>jonathan: yes. president obama has made his views known in the phone calls to president morrissey of egypt and prime minister binyamin netanyahu of israel saying hamas has to be stopped and the rocket attacks have to stop. egypt is at the forefront of negotiations and the united states clearly does not want to get in the middle of it or comment too much on what egypt's president morsi is saying or the public pronouncements of our other ally and important player^, turkey, where officials today called israel's firing in gaza "terror." the state department spokesman would not be drawn in on that

language today. >> we have been very clear israel has a right self-defense were we have been very clear that rockets continue to be fired and land on israel. we have been very clear we are working to try to get this conflict winding down and are concerned about the civilians and innocent people on both sides. >>jonathan: the united states is weighing their words very, very carefully and what obviously is a very delicate situation and the united states does not want to be seen to be in the middle of the very difficult negotiations going on right now in cairo. >>shepard: thank you, jonathan hunt. the prime minister turkey, accused the israelis of carrying out terrorist acts and the leader in turkey now calls israel a "terrorist state" and criticized world powers for israel a turn for turkey a volatile part of the world. turkey and israel used to be

allies and now to mike barrett, a fresh guest on this program is countriesly the c.e.o. of the washington, dc, consulting firm. good evening, mike. the turkish people have come out loud and strong. >>guest: it marks a huge turning point. a lot of the coverage is about egypt and camp david and we spoke about that last week. that is a major, major factor but the other thing and this is often not very visible to americans, turkey has had a major shift from being pro eastern to pro eastern. their government is not particularly radical but in terms of relations with israel they are 180 degrees from historically. >>shepard: palestinian citizens, people would live on that, in the gaza strip, and their children, are dying in the

middle of this and the israelis say, you elected what mass and the fact all of them did not elect hamas but there are points to be made from both sides. if israel loses the support of most of that part of the world and goes if there in the ground affair we could have a whole new geopolitical world setting up here. >>guest: you are absolutely right and unfortunately that is where we are headed. it is a very, very difficulty world being on this side of the atlantic ocean, a very different picture, almost like we live in parallel universes, the perception of what is happening and who is responsible and who should take which steps and who should back down is almost 180 degrees opposite between the arab world and the western world. >>shepard: you have to come up with a way that hamas says look, israel is raining rockets on us and killing our people, and israel says, we are doing it because hamas has been sending the rockets and terrorizing our people, in question they are terrorizing them, so to get either side to back down first

is a task. you can make the argument, if israel is forced into a ground war, israel could especially in that part of the world be the loser because they lose support. >>guest: that is right. if israel, when they go the body counts on the palestinian side are orders of magnitude larger and it is a defeat because israel is stronger but they are shown how much damage terrorists can do similar to how al qaeda struck the united states and made them look more powerful because they could have such an impact against a force that obviously is some much superior. >>shepard: thank you, mike, always good to talk to you. if anyone from the i.d.f. across the border into the gaza they get to a down and some soldiers are ambushed and a number of soldiers are killed and then can hamas declare victory for killing the israeli soldiers?

and galvanize that part of the world around their cause. could it become worse for israel? you bet. israelis are aware of that and so is the white house. we will monitor it from over there from those in turkey and beyond. >> president obama today in burma said the isolated nation can she the power of a new going to the world. thousands arrived the streets for the arrival, a public gathering once unheard of in burma, and it has been moving to decream after military rule and repression that kept it closed off from the rest of the world and until now no citying american president has ever stepped got in burma. wendell is now in cambodia, wendell, human rights at visit say the visit to burma came too soon. >>reporter: the white house is sensitive about that. the president aides are saying the stop was not a victory celebration or an attempt to

welcome burma to the community of democratic nations but, rather, an encouragement for the country to keep going down the road for democracy that the president says could go on for quite a while. in a meeting with burma's president he referred to the country as the new name of burma, but the united states calls the company burma but the courtesy of calling it by its new name is a message that boiled down to don't quit on democracy. >> the flickers of progress we have seen must not be extinguished but must be strengthened and become a shining north star for all this nation's people. >> burma released dozened of political prisoners as he arrived but hundreds more are behind bars. >>shepard: not so great in cambodia is my understanding. >>reporter: both burma and cambodia have a history human rights abuses and bloody fight among the people but burma is

thought to be getting better the situation in cambodia is believed getting worse for a number of years. talks between president obama and cambodian leader were said to tense with cambodia wishing for closer economic ties and president obama say that is not possible until the human rights situation improves and aides say there were no promises from either map. it is doubtful that president obama would have visited cambodia were it not for the east asian summit which is held which the president sees as an opportunity to challenge china's gains in this region. >>shepard: thank you, wendell, live from cambodia. what to do about marijuana? the prosecution in colorado are dropping marijuana cases before the new pot law goes into affect and a look at confusion surrounding the rules on weed.

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the first and only place to go this black friday. walmart. >>shepard: residents of a storm ravaged neighborhood in new york city got home to the damaged homes to find violation notices on their properties. 100 homes in the working and middle class neighborhood of breezy point in queens totally publicked to the ground during the super storm sandy and some residents say they got back to survey the damage they found notices that said they were required to row pair the homes or face prosecution but the city says this is a big misunderstandsing. what is this all about from the city? >>reporter: well, in breezy

point. imagine your house destroyed, you cannot live in it, it will be torn down but someone from the city tacked a notice on the door telling yous you have to clone it up yourself. this is called a "notice of deficiency" ordering the victims to replace the damage under penalty of law. with all the devastation they are asking, how do they do that? >> the city needs to work with us not against us. to impose a fine to threaten violations? look around, it is obviously people who have never stepped foot here. if you saw what was going on here you would not have the nerve to put that on our door. >> and his uncle, a congressman, his house totally destroyed, burned to the ground. >>shepard: what are the city leaders saying? >>reporter: the board says it

is a misunderstanding they do not mean it, they are not going to fine people. they told us and i quote, "the violations were issued to document the damage that occurred on property owners will not face penalties." they wish there was better communication between the officials, with 900 buildings in staten island could face mass demolitions and the city officials is been talking to the counterparts in new orleans to find out what that city did after hurricane katrina. no discussions, yet, on exactly what will happen when the buildings are demolished and how they intend to rebuild. >>shepard: or whether they can. so many of the homes in the neighborhoods remain beach bungalows and under the new zoning you could not do that. some folks who got busted for pot in colorado could be off the hook now since colorado voters approve add measure that legalizes the weed for recreational use. the prosecution through the state say they will dismiss

outstanding cases of possession but some are saying, they still plan to prosecute. the state is in unchartered territory and marijuana is illegal under federal law. now to rocky mountains. this is getting complicated. >>guest: and confusing because it depends where you are literally standing in the state. here in denver county the district attorney says it is a budget issue. this denver, possession cases will now be dismissed of one ounce or less if you are 21 or older. you will not be prosecuted, the d.a. opposed this amendment during the election. >> we will not prosecute the individuals who have this substance any more. it it is below that amount but we will deal with the fallout of the crime that will then be the secondary impact of people being under the influence of this

substance. >> the d.a. in boulder, colorado, said it is not worth taking to a jury. the justice department is trying to figure out what to do next. >>shepard: they have not gotten a marijuana prosecution in boulder, colorado, as long as i remember but every jurisdiction is not acting like these two towns. >>reporter: that is causing confusion. say i have an ounce of marijuana in my purse which i don't. in denver i will not get in trouble. if i drive an hour and 40 minutes notion i could get prosecuted. the district attorney says it is illegal. he said, accordingly we will not be dismissing existing marijuana possession cases but our office prosecutes low levels possession cases to get drug users help with their addiction. that practice will continue trillion state law changes. the governor signs it in law in

mid-december. >>shepard: they prosecute to get marijuana users help with their addiction? >>reporter: that is what they saying. >>shepard: a new study on voids and kids. i am not talking high school seniors, wait until you hear how many middle school students are juicing to bulk up and win. hang on. begin.

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>>shepard: some kids are becoming obsessed with getting "ripped" and researchers found that one of every 20 middle and high school students turn to steroids to bulk up.

we are talking about kids as young as 14. the report comes from the pediatrics medical journal. it isn't just boys looking to build up. researchers say a third of boys and a fifth of girls have used the popular protein shakes which is a different thing obviously. they found between 5 percent and 10 percent use other muscle enhancing products and a chemical that could cause kidney damage in high doses but they are not sure. doctors point to peer pressure and muscle guys on tv and they point to this guy as someone someone might follow which shows they old and have no idea what they talking about. it is not clear how widespread the trend is but only looked at students in schools in minneapolis, most from lower and middle income families. now, we have director of the medical ethics division and codirector of the if you sports, ethics and society program at

new york university. so the kids are juicing, not new information. these numbers seem big. >>guest: they are big and kids are too young so it is never acceptable to juice but when you start to see a 14-year-old do it, the side effects of the drugs are going to be worst earlier you use them. this bad news and i am sure it is going on. >>shepard: if it is happening in minneapolis it is happening other places. the one thing, when you are 14, that is a problem with the marijuana talk, they used to tell kids at 14, use it and all these bad things will happen and it was not true but it is true with this. >>guest: the sad fact is steroids work. they work but they have nasty side effects. what we have to do is get on the parents if your kid is bulked up from 13 and 14, get on the coaches and trainers and say, what is going on.

if i come back from summer vacation and put on 30 pounds of muscle at age 14? >>shepard: you wonder if steroids are available at every gym and everyone can get them and if that is happening in our middle schools, there is a dealer in the middle school, that is a problem. >>guest: we have problems, i don't think the message comes from the pro sports seen to say knock this off we will be tough on it. it happens when they catch someone but they do not discourage it and it trickles into the colleges which trickles back to high school and here we are with the middle school program. you have to watch for acne flareups and rage. it is cut make a genius to see if you build up overnight. something going on. >>shepard: there is a giraffe, right? a giraffe running around doing all kinds of good deeds for people, and handing out free coffee. a giraffe. we have eliminated weed and

juice as a problem.

>>shepard: and before we wrap it up in "studio b" we are going to a town with a good samaritan. he is dressed like a giraffe. he says he is unemployed but he spent the last six months doing good deeds. he handed out water during half marathon. cleaned local beaches. gave free coffee on cold days. all while wearing a giraffe costume. he told a reporter he was on the lew and wondered what would lap if he dressed up as a giraffe. no this is not in metropolitan denver. this is a town in scotland called dundee. back later for the fox report. look what happened while